The Alabama taxable income of the Electing Pass-Through Entity will be calculated in accordance with Section 40-18-24 for Partnerships, and Sections 40-18-161 and 40-18-162 for S-Corporations. Taxable income shall be apportioned in accordance with the provisions of Chapter 27 of Title 40, Code of Alabama 1975. Use the total of lines 1 through 17 in the Alabama column on Schedule K, Form 65, or Form 20S, to determine Alabama taxable income. Alabama tax paid under this provision shall not be deducted in calculating Alabama taxable income.
The tax rate is 5%.